Bar Exam Uniform Quiz
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A contract for the shipment of goods contains the following clause: 'Force Majeure. Neither party shall be held liable for failure to perform where such failure is caused by strikes, fire, flood, acts of God, governmental acts or orders, or other similar causes beyond the reasonable control of such party. Performance shall not be excused but shall be suspended for the duration of the event. A party's inability to perform due to its own financial distress or changes in market price shall not constitute a force majeure event.'
A manufacturer contracted to sell 1,000 widgets to a buyer. A month before the delivery date, the manufacturer's primary supplier of a critical component went bankrupt, making it impossible to acquire the component at a price that would allow the manufacturer to avoid a significant loss on the contract. The manufacturer notified the buyer that it would be unable to deliver the widgets, citing the force majeure clause. The buyer sues for breach of contract. Which language from the clause provides the strongest basis for the buyer's claim? Select one.
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